I have created a spreadsheet that helps me analyze each opportunity that I come across and a question around Cap rate has come up.From what I've heard on the podcasts and read on the forums different areas along with different grades of RE (A, B, C etc) will produce different cap rates. 

'General consensus is cash flow is typically in poor (non A grade) neighborhoods or you have to find a short sale/foreclosure home that needs some renovations.

There is a reason you were sent to the first grade before you went to the second grade, many try to jump in at the 6th grade, they usually fail or get in trouble.

The worse the area the less competition you have so you may be able to flip to locals in low C and D grade areas.  

The lot is narrow and deep so the possible uses are limited for something such as fast food or a single tenant office, however together with the adjacent corner lot it would be perfect for a pharmacy or small retail development.

@Brandon Turner  I pay around $1.5/sf including:+ Carpet, Builder/FHA grade, frieze with black spots+ Pad, 3/8" rebond with scrim+ Labor, removing old, installing pad and carpet, cleaning and vacuumingGood luck!

When I bid a home I spend at least an hour with the investor to understand basic taste such as material grade, creative enhancement opportunities that may exist in the asset and desired time line.

Construction grade, copper wires, HVAC, plumbing, water meters, location, electric/gas, others..any guidance would be greatly appreciated as I want to get a sense of what physical attributes do experienced investors consider. 

We would want to fit it with mid-grade finishes in hopes to get $700-$800 a month.  

When in the higher end people expect wood with area rugs and will largely grab those units first compared to average grade carpets everywhere.